Argentine and Brazil agribusiness have an “ecological surplus”
Economist Nicolás Torre, from the IERAL Institute of the Mediterranean Foundation, published an extensive thread on the social network Twitter, highlighting that both Argentina and Brazil have a positive “ecological footprint”. That is, they have more natural resources available than those they consume annually to survive. Torre’s report came in response to accusations against South America in recent weeks. First by The President of France, Emmanuel Macron, when he said that Brazil does not…
Why did GTSA develop the vendeRAPIDO® selling process for selling real estate in South America?
There are two reasons. To speed up the selling time and maximise the properties value Current Market Realities South American real estate markets are mainly lightly regulated and highly informal. This means vendors are at a substantial disadvantage when they come to selling a property within a reasonable time frame. Traditional times of sale are measured in months and years. Consequently, transaction costs are among the highest in the world. With the globalization of real estate GTSA saw an opportunity…
Selling or buying properties in remote locations
Sellers face many of the same challenges as buyers do. Still, given current market conditions in many South American markets where we operate, we are finding the market is slow for remote properties. They are often owned as second or third investments outside their home location and are only visited once or twice a year. Each Seller’s motivation clearly varies. However, there is a broad spectrum of Sellers, from those content with fair market value and others who really don’t care what fair market value…
Paraguay’s Chaco Region – Its changing landscape from raw scrubland to productive pastures
The Chaco Region of Paraguay The Gran Chaco, located to the East of the Andes and to the West of the Paraguay River, is unevenly divided between Bolivia, Paraguay, Argentina, and Brazil. It stretches for about 1,500km North to South and about 700km East to West, encircling an area of about 250 thousand square kilometres. To visualize its size, one can imagine the area of Ecuador (about 248 thousand square kilometres). Chaco was originally entirely covered with native raw scrublands but is now undergoing a transformation.…
Paraguay: A Hidden Gem in the Agricultural Market
Whenever agrichemicals players think of the South American markets, Brazil is the one that comes to mind. It became the world’s largest agrichemicals marketed a few years ago. Still, it is quite an elusive market for most players because obtaining technical-grade registration takes up to seven years. The second thing that comes to mind for those players who have contemplated a market entry into this region is risk. The area is known for its unstable currency and high inflation rate. And for those in India…
Selling Remote, Exclusive or Unique Real Estate is a challenge in any market but none more so than in South America
Selling prime real estate in the complicated South American markets requires many business and selling skills. It is not for the faint-hearted. Vendors have a low level of trust in traditional selling systems for a good reason. Many salespersons in the industry are part-time, untrained, and unlicensed, putting the owners at risk. Advice for the real estate broker looking to get into the Luxury Property Market Ok, you’ve just taken your first million-dollar-plus listing. After celebrating your victory…
Mistakes to avoid when investing in real estate in Latin America
Investing in real estate may seem simple enough. Considered one of the most profitable businesses for investors, this market offers low risk and high rewards. Latin America is rich with opportunity right now. Relatively cheap land for properties and harvest and cattle breeding presents valuable opportunities. Investors should get involved in the market to receive higher margins. However, investing in a foreign country becomes very different and more complicated. Typically, laws, regulations, and rules about…
Changing Farmland Investing Options
We think farmland as an investment is something that, in 5-10 years, will be a must in any professionally managed diversified portfolio. We are excited to be at the forefront of reporting the rapid changes in this exciting new market, which is now opening more opportunities for smaller investors via syndicates and specialised agro funds. Those smaller investors ( USD 70,000 to USD 250,000 ) seeking exposure to tangible assets with strong cash yields and low volatility have found it nearly impossible to get…
Have $1 billion to invest? Buy agricultural land is Lord Andrew Hay’s advice
For a man with information on prime properties across the globe, Lord Andrew Hay can separate the wheat from the chaff. And that’s why the wish list of the global head of the residential division, Knight Frank, like many of today’s high-net-worth individuals (HNIs), involves investing in agricultural land. Security plans The regions that have found favour are Australia, Africa and South America, according to Hay. “We are losing 10 million hectares of productive land each year. There will be a food shortage…
Southern hemisphere farmers will struggle to meet milk demand growth over next five years
According to earlier Rabobank research, southern hemisphere farmers will struggle to produce about 20 billion litres of milk needed to feed the world’s demand growth over the next five years. Rabobank dairy analyst Emma Higgins said that most of the extra supply would need to be met by the northern hemisphere. “Countries like New Zealand will really struggle to be a significant player in providing the additional milk required given they are facing challenges on-farm in the form of increasing…
SOUTH AMERICA’S UNLIKELY NEW ECONOMIC HOPE: PARAGUAY
Paraguay is emerging as a little-recognized beacon of economic success in South America. It would have been all too easy for foreigners visiting Paraguay at the turn of the 21st century to dismiss the landlocked country as little more than a languid backwater — scarred by a history of war, dictatorship and corruption, and with dim prospects. If they were to return now, they would hardly recognize the place. Gleaming skyscrapers have sprouted up across the capital, Asunción, over the past decade, a…
The Problem: Property Not Selling? Maybe we can help
There are several reasons why otherwise prime real estate gets no interest from qualified buyers. Is it priced for the market conditions? ( market values keep changing up and down ) Is it easily accessible to be viewed? Is it being advertised in the logical target markets? Does the quality of marketing represent the quality of the property? ie is it repressed by high-quality media that has been edited professionally? Here is an example from Cafayate, Argentina. Is the real estate salesperson experienced in…
Latin America: agricultural perspectives
A profile of Latin American agriculture Latin America has long been associated with the production and export of a diverse range of agricultural commodities, whether it is coffee from Brazil and Colombia, beef from Argentina, or bananas from Ecuador. Trade data show that the region is indeed an important net exporter of agricultural commodities to the world, accounting for an estimated 16% of global food and agriculture exports between 2012 and 2014, while representing just 4% of global food and agriculture…
Paraguay is a strong stable economy offering excellent opportunities in agriculture and pastoral farming
Paraguay is a fertile land of exuberant natural beauty in the central region of the continent of South America. Almost as big as California, this landlocked country (tells us that supply is limited) is located between Brazil, Argentina and Bolivia. However, it only has about 6 -7 million inhabitants, who are concentrated almost entirely in the three largest cities in the country in the north. Due to its central location, the country has been commonly referred to as the Heart of America. During the last 50 years,…
Agribusiness opportunities in South America’s emerging markets
If you are looking for portfolio diversification using farmland, we can show you very practical options for mid-sized and larger investors. GTSA offers options for direct and indirect opportunities for farmland ownership in emerging economies such as Paraguay, Uruguay and Peru. Farmland is an attractive long-term investment that offers current income, capital appreciation, an inflation hedge and favourable diversification that is negatively correlated with traditional asset classes such as equities. We believe…
